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Krispy Kreme Doughnuts, Inc. Message Board

  • di_vur_se_fi di_vur_se_fi Dec 31, 2004 8:13 PM Flag

    Parsing the 8-k

    Comments regarding the 8-k:

    The scope of the "independent" investigation was quite narrow, i.e. focusing only on a small part of the Michigan transaction, i.e. it didn't look at the really big-bucks items (capex, inventory, a/r, workmen's comp, Dallas/KC, etc...).

    Why won't kkd disclose the name of the "independent" law firm? Are they not really independent?

    excerpt from the 8-k:

    Following its investigation, the independent law firm concluded that neither the Company nor any of its employees engaged in any intentional misconduct related to these issues.

    No intentional misconduct, of course, implies unintentional misconduct. If there was unintentional misconduct, i.e. incompetence, can't we logically conclude that this same incompetence was used elsewhere in acquisitions and other accounting issues?

    excerpt from the 8-k:

    The independent law firm performed its additional procedures and did not change its conclusion.

    This is much weaker than stating that the independent law firm reached the same conclusion, i.e. the law firm may have said something like, "yeah, this is evidence of intentional misconduct, but not enough to prove it, so we really can't change our original conclusion".

    Secondly, notice the phrase "it's additional procedures"; why didn't they same "the additional procedures" or "the specified additional procedures"; how do we know that the procedures completed by the "independent" law firm matched those requested of it?

    excerpt from the 8-k:

    Two of the
    proposed adjustments involve treating as compensation expense, rather than as
    purchase price, a part of the disproportionate purchase prices paid to a former
    operating manager of the Michigan franchise and a former operating manager of
    the Northern California franchise, each of whom worked for the Company for a
    short period of time.

    Why was kkd paying $7 million or so to the franchisee operating managers? What did they do to deserve it?

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    • SBUX is in the business of making money, not restating financial statements.


      (replace with z)

      McDaniel says much of the work on the suit was performed in plaintiffs' attorney offices in New York and that his role was to guide the litigation through the North Carolina courts where it was filed.

    • Anybody who thinks that the Wall Street Journal doesn't think credible accounts of channel stuffing against Krispy Kreme are newsworthy, given the coverage they've given Krispy Kreme, is an idiot. Of course we already knew vladflushing or vladsucking or whatever his name is a moron from his incessant stream of worthless posts.

      The WSJ hasn't run a story on KKD since 12/21, I guarantee the main reporter covering the company doesn't know about it....Yet.

    • MCD or SBX will likely purchase KKD...
      assets from its bankruptcy proceedings

    • Makes no sense whatsoever and will not happen. Starbucks makes money on a product that almost everyone consumes. Coffee is is something everyone can take in without negative consequence. Starbucks has no use for dougnuts. THey already have their baked goods and they dont pump them because they dont sell well. ALso Starbucks makes $ KKD does not. Starbucks has a clean record with great expansion and profits - to add an ailing KKD would be nothing but a pimple on their ass. Plus KKD is currently priced to high. Earnings restatemnets are due and the ongoing SEC investigation will drop a mighty shoe.

      Dont beleive the fools attepts at hype folks. THeir is no reason any good company would buy KKD and tarnish themselves at a premium. KKD will be in the toilet soon enough and could be picked up for 26% of its current price. Starbucks or any other suitor these clowns bring up didnt make the money being fools paying too much for crap.

      Not even a good try this starbucks rumour. NOt a good try at all. Your McDonalds rumour failed so now you try this. HAHA goof.

      KKD is trying to sell coffee because they cant sell enough doughnuts - but their coffee is terrible. KKD is a failure. Starbucks might laugh at them now and again but thats all the attention they will get.

    • It is a curious fact of life, at least locally in maybe a dozen outlets, that Starbucks DOESN'T SELL DOUGHNUTS.

      From which you might infer..............

    • SBUX to acquire KKD?It could happen and makes perfect sense.

    • I was familiar (through work, not through investing) with another company whose troubles were all over the front page of the Denver Post (a bigger paper than the Winston-Salem paper) for a week. There was no market reaction. Then it got written up in the Wall Street Journal and the stock dropped 10% in a day. And this was a liability situation that did not reflect on the profitability of the company's ongoing business.

    • alright already, we got the idea, your sentiment is Strong Sell. What is gained by posting over and over and over. ?????


      Vlad has no life.

    • alright already, we got the idea, your sentiment is Strong Sell. What is gained by posting over and over and over. ?????

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